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Pure Storage (PSTG) to Report Q4 Earnings: What's in Store?
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Pure Storage, Inc (PSTG - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Mar 1.
For the fiscal fourth quarter, management anticipates total revenues to be $810 million, indicating year-over-year growth of 14%. The Zacks Consensus Estimate is pegged at $811.3 million, suggesting an increase of 14.5% on a year-over-year basis.
The Zacks Consensus Estimate for earnings is pegged at 39 cents per share. The company reported earnings of 36 cents in the prior-year quarter.
The company beat estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 155.6%, on average.
Shares of Pure Storage have gained 8.3% in the past year compared with the sub-industry's decline of 12.4%.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum in its subscription services, namely Pure as-a-Service subscription (including Cloud Block Store), Portworx and Evergreen Storage, is likely to have boosted Pure Storage’s fiscal fourth-quarter performance.
The company is well-positioned to gain from the ongoing data explosion. PSTG is witnessing growing clout in FlashArray, FlashArray//C and FlashBlade, owing to their portability, efficiency and reliability over traditional storage systems. This, in turn, is likely to have boosted the top line in the to-be-reported quarter.
Pure Storage continues to invest heavily in research and development to launch new products as well as enhance existing product lines. Last year, the company rolled out updates for its Portworx portfolio to help enterprises simplify and accelerate Kubernetes adoption.
Also, the introduction of Evergreen//Flex to further expand Pure’s Evergreen technology bodes well. The healthy adoption of Pure Fusion and FlashBlade//S solution is likely to have favored the top-line performance.
An expanded customer base (especially large enterprise clients) along with strength in commercial business bode well. In the last reported quarter, Pure Storage added 390 new customers. The company’s customer base includes 58% of the Fortune 500 companies.
However, weakness in global macroeconomic conditions and cutback in spending by clients are likely to affect the company’s performance in the to-be-reported quarter. Unfavorable forex movements, lingering supply-chain troubles and inflation are likely to have acted as the other headwinds.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Pure Storage has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Splunk is set to release fourth-quarter fiscal 2023 results on Mar 1. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, suggesting an increase of 68.2% from the prior-year quarter’s reported figure. Shares of SPLK have declined 13.7% in the past year.
Burlington Stores (BURL - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank of 2 at present.
Burlington Stores is set to release fourth-quarter 2022 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $2.72 per share, suggesting an increase of 7.5% from the prior-year quarter’s levels. Shares of BURL have lost 0.7% in the past year.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 2.
Costco is scheduled to release second-quarter fiscal 2023 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $3.21 per share, suggesting increase of 9.9% from the prior-year quarter’s levels. Shares of COST have decreased 5.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Pure Storage (PSTG) to Report Q4 Earnings: What's in Store?
Pure Storage, Inc (PSTG - Free Report) is scheduled to report fourth-quarter fiscal 2023 results on Mar 1.
For the fiscal fourth quarter, management anticipates total revenues to be $810 million, indicating year-over-year growth of 14%. The Zacks Consensus Estimate is pegged at $811.3 million, suggesting an increase of 14.5% on a year-over-year basis.
The Zacks Consensus Estimate for earnings is pegged at 39 cents per share. The company reported earnings of 36 cents in the prior-year quarter.
The company beat estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 155.6%, on average.
Shares of Pure Storage have gained 8.3% in the past year compared with the sub-industry's decline of 12.4%.
Image Source: Zacks Investment Research
Factors to Note
Continued momentum in its subscription services, namely Pure as-a-Service subscription (including Cloud Block Store), Portworx and Evergreen Storage, is likely to have boosted Pure Storage’s fiscal fourth-quarter performance.
The company is well-positioned to gain from the ongoing data explosion. PSTG is witnessing growing clout in FlashArray, FlashArray//C and FlashBlade, owing to their portability, efficiency and reliability over traditional storage systems. This, in turn, is likely to have boosted the top line in the to-be-reported quarter.
Pure Storage continues to invest heavily in research and development to launch new products as well as enhance existing product lines. Last year, the company rolled out updates for its Portworx portfolio to help enterprises simplify and accelerate Kubernetes adoption.
Pure Storage, Inc. Price and EPS Surprise
Pure Storage, Inc. price-eps-surprise | Pure Storage, Inc. Quote
Also, the introduction of Evergreen//Flex to further expand Pure’s Evergreen technology bodes well. The healthy adoption of Pure Fusion and FlashBlade//S solution is likely to have favored the top-line performance.
An expanded customer base (especially large enterprise clients) along with strength in commercial business bode well. In the last reported quarter, Pure Storage added 390 new customers. The company’s customer base includes 58% of the Fortune 500 companies.
However, weakness in global macroeconomic conditions and cutback in spending by clients are likely to affect the company’s performance in the to-be-reported quarter. Unfavorable forex movements, lingering supply-chain troubles and inflation are likely to have acted as the other headwinds.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Pure Storage has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Splunk has an Earnings ESP of +0.39% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Splunk is set to release fourth-quarter fiscal 2023 results on Mar 1. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share, suggesting an increase of 68.2% from the prior-year quarter’s reported figure. Shares of SPLK have declined 13.7% in the past year.
Burlington Stores (BURL - Free Report) has an Earnings ESP of +2.90% and a Zacks Rank of 2 at present.
Burlington Stores is set to release fourth-quarter 2022 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $2.72 per share, suggesting an increase of 7.5% from the prior-year quarter’s levels. Shares of BURL have lost 0.7% in the past year.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 2.
Costco is scheduled to release second-quarter fiscal 2023 results on Mar 2. The Zacks Consensus Estimate for earnings is pegged at $3.21 per share, suggesting increase of 9.9% from the prior-year quarter’s levels. Shares of COST have decreased 5.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.